hi, everybody. welcome to "on the money." i'm maria bartiromo. the housing and recovery, how strong? what does it mean for the markets and your money? in such a low-interest race environment what do you plan with your money? fracking and energy independence. we get into it all with the chairman and ceo of chevron. what may happen to the price of gasoline and oil, next. and helping you find and talk to a doctor when you need one. a different kind of sherpaa can guide you when you need help. >> people call me the doctor of the future. >> "on the money" begins right now.

i'm bill griffeth. maria will be along in a few minutes with the rest of the program. first a look at what's making news heading into a new week "on the money." the u.s. economy grew at a slightly faster pace than prevently thought. the final read on the gross poe domestic product, measure of the yoeshall size and strength of the economy rose an an annual pace of 0.4%. better than the previous estimate of just 0.1%. business investments and exports were better than first reported. the markets flirted with new highs during the holiday-shortened week. on tuesday the dow was up triple digits. on thursday, the s&p finally hit a new all-time high. long lines as cyprus reopened banks thursday. the tiny island nation with a huge banking system allowed

depositors to withdraw cash for the first time in a week. a limit of 300 euros per person per day, part of a bailout to rescue sitheir banks. and lithium ion ballot ritt. reports it may face another challenge. a temporary ban on long distance flights. one airline ceo has full confidence in the dreamliner but is concerned about the impact of the sequester. >> concerned about, you know -- when we start to hear about reductions in tsa agents. that would certainly have an impact. reduction in customs acts. that would have a big impact. anything that makes lines longer for customers, we certainly don't want to see. >> elsewhere, t-mobile is changing. it will stop subsidizing cell phones and customers will either have to buy cell phones at full

price, pay in installments or bring their own home. typically phone companies offer subsidized phones as a substantial discount when the a customer signs that two-year contract. the markets are watching a tiny island in the mediterranean. investors are hoping for big returns here in the united states. which is likely to win out here? joining me now, joe lavorgna from deutsche bank and nathan bacharach, the financial group ceo. gentlemen, welcome, thank you for joining us here "on the money." what do you think? nathan, we see the markets reaching or touching new highs almost on daily basis during this first quarter. how much room is there to run for the upside still? >> well, there is room to the upside. it's all going to be dependent on the retail investor and whether or not the $900 billion, bill that is still sitting in checking and savings accounts, if that stuff starts to move that could be the power that could really drive the market further as long as we don't have disturbances in the force that

would be europe. >> exactly. and, joe, here in this country, housing seems to be a primary driver of our recovery. even though the data is mixed. listen to what david blitzer of standard & poor's had to say about that. >> overall, we're now about 9% a above the lows for composite. beat the consensus forecast, a touch under 8%. across all 20 cities and really across housing given a lot of the other economic data, we seem to be cranking it all cylinders. >> do you agree? is housing cranking on all cylinders now? >> yes, bill. i would actually look at the core logic home price data, more timely than the s&p data, shows more appreciation, and chronologic told us this week home envinner tos are down in absolute terms almost 20% from a year ago. yes, housing is firing on all

cylinders. economy-wide spending is worth about 20% of gdp. on average, only 17%. the housing secretator it provis with a lift immune from what's happening overseas what can get in the way of the market? largely ignore, the european issues, the banking crisis in cyprus. are there road blocks people are thinking about? >> a couple road blocks. one thing not talked about at all, china at some point has to figure how to support their middle class. you have 85 billionaires inside of your governing body, that probably tells you wealth distribution isn't going along too well. they don't get the middle class, they'll have challenges over in china. in europe, they're working out of a philosophy, i'll call it amend, pretend and extend. pushing everything out, trying to ill nor everything agnore ev.

on one hand, i'm really concerned. on the other hand, we've seen the book before, have the videotape and t-shirt. it's 2008 and 2009. i think europe will continue to dop what europe needs to dop to keep their corporations making money and economy stumbling forward. >> joe, how do you think cyprus ends and how much attention should we pay to it? >> certainly worth paying attention. rnlg sha shakes confidence. other more important or larger economies, rather that have further disturbances, but if you look back at the u.s. market and see how the stock market's performing, importantly, bill see how credit spreads are performing. also the economic data being better than average it does look like -- i shutter as i say this word. it looks like the u.s. is decoupling from europe. as long at the ecb is the backstop they've been, europe can continue the long and come out of its recession, but the u.s. will remain relatively

immune because a lot of the growth in the u.s. we expect to be domestic driven a. stellar first waur. what are you telling clients to invest in? >> i like large cap growth. con edison, electricity to power your set selling at 16 times earnings, i look over at large multi-national corporations here that are selling at ining as a selling at a group, about a 20% discount to traditional peo ratio, to improve your portfolio without putting money in stocks, move money over, made mun in small caps, mid-caps move to large cap growth. on the stock side. on the bond side shorten up my duration. the amount of hurt you're going to get if interest rates go up. the ag, somewhere in the 5s. maybe a 5, maybe a 4.5 to 5% on my bond portfolio so a rise in interest rates can't hurt my

bond portfolio. >> very good. joe, nathan, thanks for joining us. >> thank you, bill. >> you bet. now back to maria for the rest of the program. thanks, bill. up next, we're "on the money." can america be energy independent anytime soon jl where are gas prices headed from here? my conversation with the ceo of one of the largest oil companies in the world is next. later, how health care of the future could lead you back to a better relationship with your doctor. harnessing technology for cheaper and more affordable health care. back in a moment.

john watson is chairman and

ceo of chevron one of the world's largest energy companies. a company with billions on the balance sheet and big imbusinesses. i spoke to him about america's natural gas bounty and investing in the company the future. >> we're investing this year some $37 billion as part of that growth strategy, which will delivers 3.3 million barrels a day. up about 25% from today out in 2017. >> where will you invest in particular? what are the priorities in term the of oil and gas production? >> 25% in the united states. the opportunities made available to us over the years have been around the world. so we have big investments in australia. two liquid pefied, investing $8 billion. we expect them to come online late 2014 and 2016 and deep water developments, projects to

add to production in this country. >> mexico, after the bp spill, permitting was very much slow, and you know, not happening. are you getting the access to the product at this point in the gulf of mexico? are things back to normal? >> we've been able to get the permits that we need, bupt we need to allocate more time. new regulations, standards, we support and work through with the regulators. harder for the smaller companies. the bigger issue is access to acreage. 80% of our continental shelf is off limits to development. if we want to grow development in this country we neepd need to make the acreage available, on and offshore. >> let me ask you about the debate. hydraulic fracturing or fracking, the biggest story in american energy now. but there is pressure from environmentalists, pressure from people who say, look, this is not going to be done safely. it will impact our environment,

our wildlife. first, can it be done and can it be done safely and, second, how important is the it to chevron? >> the reality is, maria, we've been doing fracking for decades in this country. it is really not new technology. it's being deployed in a new manner, but we've fracked over 1 million wells in this country. so it's not new technology. natural gas that comes from shale, that's derived from hydraulic fracturing makes up to 30% of our natural gas. it isn't an issue. there are environmental practices that need to it be followed. whether it's the casing designs put in place. making sure we minimize the footprint around some of our facilities, and the industry is taking actions to address those concerns. but fundamentally, it's safe, it's been in use for a long time and it's a windfall for this country. >> i guess the white house recently came out with an environmental report as it relates to the keystone pipeline. they said in fact, it is not going to impact the environment

negatively. what was your thought about that report? >> no surprise. we have 2.5 million miles of pipelines in this country. we know that moving oil and gas by pipeline is safe. again, we have to have the right safeguards in place, but the industry has only improved its standards over time, and has performed better and better. >> this is an opportunity to create millions of jobs. isn't that right? >> well, it is. in fact, some estimates would say there's 1 million jobs over the next 20 years that can be created in this country and literally trillions of dollars in tax revenue available. all we have to do, make acreage available, make sure we keep a reasonable fiscal terms in place and issue permits on a timely basis. >> it makes a lot of sense. in terms of job creation, the terms the u.s. has to be an exporter. is that a reality? >> we are an energy exporter of some products. natural gas has a great opportunity for gas export going

forward. oil, in general we're consuming more than we're able to produce but account reduce the amount we'll import and on necessary energy basis have the opportunity to be a net exporter over the next 20 years. >> and in terms of the gridlock in washington, how has that impacted you? >> our industry is a worldwide industry. we continue to invest, but the uncertainty that we're seeing in washington does give many people pause and slows economic development and that's not good for my business, but it's not good for others as well. >> let me ask you about your allocation of capital. a lot of people at your analyst meeting recently talked about that big cash load on your balance sheet. $22 billion in cash. in such a low interest rate environment what do you plan noor money? increasing the dividend? >> our priorities are to increase the dividend as the pattern of future earnings and cash flow permit. increased it 25 years in a row and have a potential to do the same thing. we do keep a little bit of extra cash on our balance sheets so we can withstand the ups and downs of the commodity markets, what

is the expectation for oil and gas prices? they go up and down and you won't predict. based on the demand story and supply of oil and gas, are oil prices priced right? >> oil is truly a worldwide commodity. the market is fairly well balanced today. we've seen upsets politically that can influs supply, fundamentally the market is well supplied to meet the needs. natural gas in this country is a little different. because of the shale gas we're able to produce and other unconventional gases, we actually have a relative surplus of natural gas. those import terminals on the west coast are turned around for export. meanwhile, consumers are benefiting with very low prices. whether you're an industrial customer or from the northeast, you're benefitting from that. >> my thanks to john watson. up next, "on the money" whip a look at a start-up providing health care benefits to employees of other fast-growing start-ups. i'll talk to a doctor who predescribeed smarter technology

for better care, and look for us on facebook. back in a moment. two years ago, the people of bp made a commitment to the gulf. and every day since, we've worked hard to keep it. bp has paid over twenty-three billion dollars to help people and businesses who were affected, and to cover cleanup costs. today, the beaches and gulf are open for everyone to enjoy -- and many areas are reporting their best tourism seasons in years. we've shared what we've learned with governments and across the industry so we can all produce energy more safely.

i want you to know, there's another commitment bp takes just as seriously: our commitment to america. bp supports nearly two-hundred-fifty thousand jobs in communities across the country. we hired three thousand people just last year. bp invests more in america than in any other country. in fact, over the last five years, no other energy company has invested more in the us than bp. we're working to fuel america for generations to come. today, our commitment to the gulf, and to america, has never been stronger.

the old model you made an appointment and hoped to get in in a timely fashion. most of our patients reach out to us via e-mail. when you get tested, this is what you see. a sherpaa is a guide, take you on a journey a siafe way.

medicine needs something new to make the process of being sick a little easier. it empowers people in the broader picture 6 what we're facing in this country. obesity, diabetes, heart disease. if you make patients advocates are their health, soon younger, maybe we change the whole picture. >> in an era long removed from house calls tapping into smarter technology may be just what the doctor ordered. health care is right. new york city sherpaa guides growing companies towards more efficient, less expensive health care keeping employees healthier. dr. jay parkinson is founder and good to you have on the program. >> thank you. >> health insurance, the second biggest expense for kpircompani. we know that amp pfter payroll. how will your company counter that? they'll e-mailing. how does the system work.

>> whenever a company signs up for sherpaa we send each employee an e-mail saying welcome to sherpaa. they sign up and get access to 24/7, to one of our doctors. so whenever they're in a bind, they're sick, they're hurt, they shoot us an e-mail, give us a call. we'll try to solve the problem right then and there or fast-track them into exactly who they need. >> whereas in today's world, obviously, it's very difficult. something happens, very difficult to get to your doctor in an emergency. you may not see the doctor that is the one that you wanted, because they may not be on call that weekend. >> sure. we've got an e-mail from a patient who is describing classic apent site is. we forwarded his e-mail on to the surgeon, dr. goldstein. he said send him right over. sent the gentleman over. he was examined, found to have appendicitis, they signed him up for a room. within you know, six hours, he contacted us and was home minus an appendix and it cost about

$60,000 less than going to be hospital. >> how is it possible it's $60,000 less? how are you able to offer these lower prices than the entire health care system, which is so expensive? >> think of a hospital. sort of like a factually that can build anything. we like to direct patients to factories that can build just one thing. >> tell me about your career. earlier you worked as a primary care doctor using google's calendar and texting to talk to patients. that was obviously very smart. how can you leverage consumer adoption of technology to make that patient-seeking experience more pleasant? >> it's so old school. that's the thing. it's just e-mail on the phone. it's just real innovation. it's like within a minute you can get a responsible from one of our new york city-based doctors. >> is it too many fishhard for n one? >> doctors aren't paid for

communication. if they were, we'd communicate in whatever way we found best. >> interesting. very good point. you spent some of your own money starting this company. how was the capital starting landscape and how who it been for you? >> for the parse five years, people call me the doctor of the future. i've been really connected to the vc world. so, you know, honestly, it was very -- relatively easy for us. because most vcs who don't invest in health care want to invest in health care, because it's something cool, something new. something meaningful. >> do you see more of this on the horizon? is this space ripe for more funding? >> the challenge is, sometimes technology is, that doesn't fit into the economic model of health care, and it's more of a political problem rather than a technological problem. >> why? >> well, for example, whenever, you know, the feds are saying

we'll only pay doctors for office visits and procedure, whenever you bill companies it's based on messaging to doctors, it's never going to work, unless you create a business model around it. that's what we've done. >> what is your business model? how do you make money? >> we contract with companies. so, you know, it's very easy. we charge about $50 a month per employee. and those employees get unlimited access and typically what happens is whenever we do this strategy with a kpcompany "save weren't $1,000 to $4,000 per year per employee. >> terrific. glad to have you on the program. watching the success. great story. dr. jay parkinson, sherpaa. up next, an impact on the money and the world's biggest hamburger chain expanding its menu. you'll never guess which vegetable is making its debut and it's not april fool's. stay with us. this is america.

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and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] one pill each morning. 24 hours. zero heartburn. for more "on the money" check out the website. i hope you'll follow me on twitter and google. look for @marbartiromo. on monday, institute for supply management releasing monthly manufacturing index. tuesday, total auto sales for the month of march. friday, big kahuna, unemployment rate and number of jobs lost or

gained in the month of bhmarch when that monthly report is reported. and the fast-food chain romming out new dishes to attract health-conscience diners. mcdonald's will 60er the chicken mcwrap that comes with cucumbers. the fast-food chain says it will mark the first time the vegetable will be part of its core menu. they hope chicken and cucumbers is a recipe for success. thanks for joining me. my guests, a.g. lafley, former ceo of procter & gamble. keep it right here where we are, "on the money." have a great weekend, everybody. i'll see you next weekend.